So, basically, the university are 'doing the right thing 'in terms of communication, after all!
I have been surprised by this thread too, that the 'customer' mentality still persists even though the loans are all in the student's name and that these students are adults. I don't think that means parents shouldn't be involved, but it is up to the student if they want that. The first thing I ask if a student is in difficulties is 'have you told your parents' and strongly encourage them to do so if they haven't.
The thing most students cry about in my office, once they are in difficulties is 'letting their parents down'. I do honestly believe most parents have their children's best interests at heart, but a few don't and do pressure students to do unsuitable courses or continue when it's not a good idea or in other ways are not quite the 'model' parents that people think of on MN (also they may have mh or alcohol problems themselves, I am currently supporting someone in that situation who lives with her grandmother and has had a very difficult start to uni life).
I always tell them to be honest with parents, get them involved in the conversation. I had a student break down in an assessment recently and encouraged them to go home to mum and dad, regroup and come back. The student did, with their support, and has successfully finished the degree. What I don't do though, is reach for the phone myself to talk with parents myself. They are not my students, and it is better for the student, who knows the parental relationship, to start that conversation. The only exception is if the student is having severe mental health difficulties and we fear for their safety (and this is done by a welfare officer).
I think our uni offers great support for students having difficulties, and our recent research on this bears this out, the students all felt very well supported and knew where to turn.
Parents are, to me, for 18-22 year olds, a pillar of support for students, and can advocate for them too, but they aren't in the decision-making capacity they had up to 18 and that's really difficult to manage for everyone, but that's how it should be when we are all helping our students towards independence. You wouldn't go and see their manager if they got on a M and S training scheme age 19, and it's similar really.